Alibaba Fuels Domestic Price War With Latest Budget Shopping Channel on Taobao App, Seek Recovery In Retail Consumer Goods Sales

Alibaba Group Holding Limited BABA fueled a price war with online shopping rivals JD.Com, Inc JD and PDD Holdings Inc PDD with the latest new budget section on its flagship digital retail platform Taobao.
Alibaba's 99 Temai, which translates to "99 special sale", is initially available to select users on the main page of Taobao, China's biggest online retail marketplace, SCMP reports.
Reportedly, this budget channel's first batch of products covers household goods, snacks, and plants. The channel also offers free shipping and will likely be accessible to every Taobao user by the end of April.
Taobao's five strategies for the year include higher price competitiveness. The other strategies include Taobao's live-streaming campaigns, private domain traffic, and local retail and content.
In late March, Alibaba shared plans to split into six units: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.
Each business group CEO and board will manage the corresponding unit and each business group.
China's retail sales of social consumer goods in China rose 3.5% year on year in the first two months of 2023, beating market expectations to reach 7.7 trillion yuan ($1.1 trillion).
The online physical goods GMV for Taobao and Tmall, excluding unpaid orders, recorded a mid-single-digit year-over-year decline due to the COVID-19 resurgence, weak consumer demand, and competition.
In March, JD.com kicked off a 10 billion yuan subsidy campaign covering many items, including Apple Inc's AAPL iPhone, earphones and air conditioners, and groceries like milk.
Price Action: BABA shares traded lower by 2.59% at $98.11 on the last check Wednesday.

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